25 February 2023

Have you considered a registered farm partnership?

A registered farm partnership is a great way to smooth the succession process, delivering lifestyle and financial benefits. Gordon Peppard, Teagasc Collaborative Farming Specialist, tells us more.

There are more than 3,500 registered farm partnerships (RFP) operating in Ireland. Why?

This collaborative farming arrangement delivers a range of benefits, particularly for farm families. RFPs provide a natural progression to farm succession, giving the young heir a sense of responsibility and purpose within the farm business and a share of the profits. RFPs between family members (intra family) are most common but there are also inter farm RFPs where non-family members come together to form a collaborative business arrangement. RFPs provide all members with a say in the decision-making and management of farming activities. They also generate numerous financial benefits.

RFP applications can be submitted at any time during the calendar year. But, if you plan to submit an application to enter an RFP in 2023, it must be submitted before 10 February. This deadline is in order for the Department of Agriculture, Food and Marine to have it processed in time for submission of your Basic Income Support for Sustainability (BISS) ap- plication before 15 May 2023 under an RFP number.

There are five key areas to address when completing an RFP application:

1 Establishing the herd number for use in the Registered Farm Partnership

RFPs can be a single herd number partnership, or a multi-herd partnership.

Multi-herd number partnerships; Where two individuals currently have their own herd numbers and have been farming in their own right prior to the establishment of the partnership, then this will be a multi-herd partnership. No changes are required to the herd numbers and partners can nominate a dominant herd number to use for animal registration, herd health management, etc. The other herd number may be made dormant but not end-dated as it will be required for scheme payments. The BISS application will then be made as one application under the RFP number. Within the BISS application form, both herd number tabs will appear and lands associated with each herd number should be declared under the respective herd number.

Single herd number partnerships; Single herd number partnerships generally arise in a family situation where a son or daughter (with a minimum Level 6 agricultural qualification) are returning home to farm in conjunction with their father/mother in an RFP. Discuss with your local Regional Veterinary Office (RVO) and agricultural advisor whether to add the son/ daughter to the existing herd number or whether they should establish their own herd number.

In the majority of cases, the new entrant is added to the existing parent/s herd number using an ER1.1 application submitted to the local RVO. Before changing herd number, ensure to discuss it with you agricultural advisor/consultant as some schemes may need prior approval to change.

2 Setting up the RFP bank account

A new RFP bank account must include the names of all the partners. All income and expenditure from the partnership will go through this account.

No farming transactions of the partnership should now take place through an individual partner’s own bank account. It is essential to notify all sources of payments, for example co-ops, marts, Department, etc, of the change of bank account details. There is a one-page form to be com- pleted and stamped by the bank to verify that the bank account is set up and operational.

3 Completing the on-farm and partnership agreements

These agreements are very important documents and require consultation with accountants, solicitors and agricultural advisors for their completion. The agreement forms the basis of a successful RFP, where all the partners’ roles and responsibilities are clearly defined. All template agreements are guidelines and should be amended to reflect each individual partnership agreement.

4 Providing supporting documentation

The following documents must be included with your application for an RFP.

• Completed application form
• Completed bank details document verified by bank
• A signed copy of the farm partnership agreement
• Copy of on-farm agreement
• Copy of folios and maps of all owned lands
• Copy of leases and maps for all lands leased in
• Stamp duty certificate from Revenue for all leased land
• Evidence of agricultural qualifications (minimum Level 6) for Category II partners
• Completed checklist

5 Submitting your application

Completed applications with all supporting documentation should be emailed to farmpartnerships@agriculture.gov.ie before 10 February 2023 in order to have an RFP number prior to the closing date for the BISS on 15 May 2023.

For further information on forming an RFP, please consult the Teagasc website or contact your local Teagasc office for further information.

This article was published in Today’s Farm – January/February 2023. Read the full publication here.